HTX abruptly suspended trading and deposits of World Liberty Financial (WLFI) tokens and the USD1 stablecoin on June 5, 2026, after WLFI froze specific tokens in exchange-linked addresses. Trading pairs WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 went dark at 13:00 UTC. Deposit and withdrawal services for USD1 were also shut down.
Why WLFI locked the tokens
World Liberty Financial said it froze the WLFI tokens because of an ongoing review tied to UK sanctions. The freeze targeted addresses HTX had control over. The move follows a UK sanctions designation on May 26, 2026, against Huobi Global S.A., a Panama-registered entity linked to HTX. London imposed the penalties under the Russia (Sanctions) (EU Exit) Regulations 2019, accusing the company of moving more than $1.5 billion in funds that helped Russia dodge sanctions.
HTX described the frozen assets as belonging to individual users who legally bought them — not to HTX or any sanctioned party. The exchange asked WLFI to restore access, but didn't say whether any of those user addresses were themselves on a sanctions list.
Smart contract controls and past disputes
WLFI’s token contract includes an admin-controlled blacklist and freeze function. The company says it uses risk-based compliance checks. That same function was used in earlier disputes in 2025 involving large holders, including Tron founder Justin Sun. HTX itself was one of the first big exchanges to back World Liberty Financial and listed its USD1 stablecoin on May 6, 2025.
WLFI maintains that the frozen tokens remain safely on the blockchain. Withdrawals are expected to resume once the freeze is lifted, the company stated — though no timeline was given.
USD1 holders moved to USDT
HTX automatically converted all user USD1 holdings to USDT at a one-to-one ratio after suspending USD1 deposits and withdrawals. USD1 is a stablecoin pegged to the U.S. dollar, with collateral held by BitGo Trust. The conversion effectively swapped a BitGo-backed token for Tether’s USDT, the dominant stablecoin in crypto markets.
The suspension leaves traders holding WLFI tokens stuck until the freeze ends. It also raises questions about how exchanges manage compliance risks tied to smart contract features they don’t control. HTX hasn’t said whether it plans to delist WLFI permanently.
WLFI and HTX have not announced a date for the freeze to be lifted or for trading to resume. The UK sanctions list remains active, and any resolution will have to clear that compliance review first.
